[cross posted from The Hayride]
Posted by: MacAoidh on Tuesday, August 21, 2012, 8:45
I’ve always been a proponent of a flat tax, and particularly Steve Forbes’ plan in which the first $30,000-40,000 of individual income was exempt from income tax and an 18 percent rate was to kick in after that. I never could understand the objections to that plan and why it never got close to a serious hearing in Congress.
That said, I never really had a problem with the Fair Tax Mike Huckabee and others have been pushing for the last few years. Replacing the income tax system with a national consumption tax is a perfectly good idea which would spur economic growth. But the Fair Tax is an awfully heavy lift, because before it would ever garner any real support from economic conservatives you’d have to repeal the 16th Amendment. You can’t have an income tax in place at the same time as a consumption tax; that’s an invitation to even less fiscal discipline than we have now.
But there’s a third option which has just made its debut, and the more I look at this one the better I like it. It’s called the Neutral Tax…